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A significant uranium discovery in the Althabasca Basin has triggered an influx of geological and management talent to the region.
A significant uranium discovery in the Althabasca Basin has triggered an influx of geological and management talent to the region. Joint venture partners Fission Uranium (FCU-TSX.V) and Alpha Minerals (AMW-TSX.V) have risen from penny stocks to a combined value of over $175M in six short months. Alpha Minerals has generated a 17-fold return because of the high-grade uranium discovery at Patterson Lake South (PLS) in the Athabasca Basin.
“Big League Talent” (geologists, financiers, and market makers) are aligning themselves with the projects and capital that will secure a foot hold in the play.
Azincourt Resources (AAZ-TSX.V) recently inked a deal with Fission for a stake in Patterson Lake North, northerly neighbor to the PLS discovery. When AAZ resumed trading, it went up 63%.
A few days later Azincourt announced the addition of three industry heavyweights to its management team: an accomplished uranium CEO, a major league corporate development geologist, and a foundational Fission director.
NexGen (NXE-TSX.V) is operating in the same uranium basin. Like Azincourt, they have attracted two high-pedigree uranium geologists.
On May 22, 2013 senior geologists James Sykes and Matthew Schwab joined NexGen from Rio Tinto (RIO-NYSE). Sykes and Schwab migrated to Rio when it acquired Hathor for $654. Sykes and Schwab were key members of the team that deconstructed the drill data to create the first 3D geological model of Roughrider.
NexGen CEO Leigh Curyer was previously the CFO of Southern Cross Resources and was integral in the merger with Aflease Gold and Uranium Resources to Uranium One. V.P of Explorations, Andrew Browne has been exploring for uranium for 40 years. Leigh and Andrew are focused on properties with strong geophysical signatures that exhibit the prospect of high grade high tonnage at economically developable depths. NexGen is now the largest landholder in the southwest Athabasca.
After raising $15.6 million as a private company, NexGen listed on the Venture exchange in late April.
Curyer and his team are focused on two projects, both of which sit next door to Athabasca hotspots: Radio, which is adjacent to Roughrider, and Rook 1, beside and along trend from Patterson Lake South.
NXE holds a 100% interest in Rook 1, which abuts the northeast corner of the Patterson Lake South (PLS) discovery.
Initial geophysics suggest the structures at PLS continue directly onto NexGen’s ground. To confirm, NexGen recently completed a ground gravity survey over the iced lakes section at Rook 1. The data is being processed.
Next NexGen plans to run several lines of ground DC resistivity in the southern section of Rook 1, which will help pinpoint the best drill targets for the initial 1,500-metre campaign to commence this summer. In addition a detailed regional radiometric, magnetic, and very-low-frequency electromag aerial survey will provide information about basement geology, alteration features, and conductor alignments.
Should the high-grade uranium zone extend from the Fission-Alpha property into Rook1, NexGen could be the Athabasca’s next big growth story.
NXE also has an option to earn a 70% interest in Radio, which is located right beside Rio Tinto’s Roughrider deposit. When a project sits directly beside a 47-million lb. deposit bearing 11.3% U3O8 the first exploration target is the extension of that structure. NexGen is currently preparing for a 4,400-metre drilling program.
NexGen’s properties are all situated in the middle of Saskatchewan’s world class uranium basin, the Athabasca, which contains known uranium reserves offering the energy equivalent of 19 billion barrels of oil.
China has 28 nuclear reactors under construction, with another 49 planned and 120 proposed. Vietnam, Turkey, Indonesia, Egypt and Kazakhstan are all building their first reactors. Uranium shortfalls are looming.
With two promising projects, cash, and veteran management, NexGen is positioned for a uranium sector breakout. NexGen’s upside enticed two technically savvy uranium geologists to leave an $83-billion international producer to supervise a targeted drill program in Canada.
NXE is currently trading at .32 with a market capitalization of $27 million.
